If you haven't noticed by now, the GeForce GT 220 is not meant for gaming. While it may be able to play older games at lower resolutions like 1024x768 or with lower details, it completely lacks the rendering power for anything more serious. What it is made for is desktop use. The power consumption in idle is a low 15W which will help save you some money, especially if you are running a whole office full of computers. Features wise everything you need is there, the lack of DirectX 11 doesn't seem to be that important, considering you won't be enjoying many games on these cards and as NVIDIA told us for years, DirectX 10.1 is useless anyway. I really like the switch away from S-Video output to native HDMI on recent cards. It will help with the widespread adoption of media PCs to play back content on HDTVs. While it is nice that you no longer need to route an SPDIF cable to your sound card, I would have preferred a more complete approach like ATI's integrated HD Audio Device inside the GPU.
When compared to the one-year old Radeon HD 4670, which sits at an even lower price point, the HD 4670 wins in Performance, Price, Perf/Watt, Perf/Dollar. Out of these criteria for a low-end card the most important is price. Just price, not price/performance - 3D performance doesn't matter for 2D/Aero desktop. Right now the GT 220 cards are going for $70-$80, which is clearly too high. Thanks to the 40 nm process NVIDIA can make those GPUs really, really cheap. This, in my opinion, is the whole point of this product: cheaper GPUs for NVIDIA, better margins. In order to be able to compete in the retail market, the price of these cards has to go down to the $50 region.
Inno3D's GeForce GT 220 variant comes with NVIDIA's reference PCB so you can rest assured that the design quality follows NVIDIA's high standards. Unfortunately the fan does not have any form of temperature control. This means that the fan will always spin at the same noisy levels no matter if the card is idle or under load. It also seems that 1 GB of VRAM has no measurable advantage over 512 MB for a card in this performance class, so if you can save a few dollars by opting for the 512 MB variant - go for it. If the prices are too close together to make any difference for you, get the 1 GB variant which should have a better reselling value.